Learn how to structure your business plan to deliver amazing results and earn an additional $100,000 as a real estate investor. No more hype and B.S. from the fear peddlers out there telling you that this is not the business for you. Enough with the constant money hungry thieves taking your hard earned cash and selling you useless information! Take your future into your own hands and create the Business Blue Print that will deliver the results you want in the next 12 months or less! Change your life and your future for the better and don’t let anyone tell you that you can’t do it!
Hello, and welcome everybody to another edition of ExtremeRealEstateInvestors.com, the pod cast for all of your real estate investing needs, questions, strategies, and techniques. I’m very excited to be here today and I continue to get a tremendous amount of emails and feedback throughout the week, asking a bunch of different questions, ranging from what to do on specific deals that people are working on to the new investors that are just trying to get into the business now for the very first time. I want to welcome you to the pod cast, and thank you so much for taking the time to listen to me and what I have to say the world of real estate investing as I know it. I want to make sure everybody out there has a great and clear understanding about how to invest in real estate, what to look for, how to structure deals, what qualifies as a deal, and what to do with it once you’ve got it.
I’ve been in real estate for about thirteen years now, and I started off as a real estate agent just selling houses for commissions, and have evolved into a full time real estate investor who now owns a real estate brokerage with nearly forty employees and independent contractors working for me. I’m 36 years old, I’ve done over 700 transactions totaling over one hundred million dollars and doing all of this has helped me realize my dream life, my dream life style, and I want to help you achieve your dream life style through investing in real estate today. With the techniques I will teach you in these free pod casts alone, you can get out there and consistently make anywhere between five thousand dollars and fifteen thousand dollars per deal, just by wholesaling properties. The process is so simple that it is practically a no brainer once you understand some fundamental basics about real estate investing.
If you wanted to do this business part time and just make an extra five thousand a month, I can show you exactly the steps you need to take to achieve a five thousand dollar per month additional income. If you wanted to do this full time, quit your job and and get into real estate investing, the earning potential is limitless. Currently, I am averaging a very high five figure and low six figure monthly income and you heard me right, I said five to six figures consistently, and on a monthly basis from my real estate investing. I can honestly say, I’m not necessarily the sharpest tool in the shed, I never graduated from high school, and I must have had well over fifty jobs from the time I was sixteen years old until I started making money in real estate. In fact, my first two and a half years in the real estate business, I was still working another full time job just to make ends meet. Now if you’re anything like I was, struggling to pay bills, buy the things you want, take vacations, pay for college for your kids, or anything else that you desire, but cannot seem to get a grip on, you’ve come to the right place.
I can help anyone who is serious about making money in real estate, just like I’m helping my current coaching clients and investors make money too. If you’ve been sitting on the sidelines, wondering what you should do, you’ve come across my pod casts, or seen some of my videos on You Tube for a reason. Now is the time for you to take action and do something. Listen to my pod casts, go to You Tube and search my name, Michael Kevorkian, and hopefully you’ll get some motivation to make a change in your life for the better. What I teach in real estate investing is a simple twelve step real estate investing system which is a step by step process to walk you through the beginning stages of real estate investing all the way through being a professional real estate investor. I have taken all things into consideration and assumed that anybody listening right now is starting where I did when I first got into investing.
Which is full of motivation and desire for a change, but absolutely no money. That being said, I’m going to go through an introduction of real estate investing and give you a little bit of pointers and step by step process of what we do in real estate as investors, from the very beginning. What is real estate investing? What does that word invest mean, in terms of real estate and what are you going to learn here? It’s actually pretty simple really. It means that you’re in the business of buying and selling property, or an interest in a property for a profit. As simple as the concept may be, many people still have a very hard time wrapping their mind around the idea, or they feel that they can buy, sell or loan on any property regardless of it’s price or value, sell their property or interest in the property and make a ton of money.
In order to be really clear with you from the beginning, I want to assure you that you can in fact sell real estate and make a bunch of money, but you cannot sell something that is over priced and expect someone to come along and buy it. You wouldn’t over pay for something if you knew that it was worth less money, would you? Of course you wouldn’t and neither will your buyers, whether they’re investor cash buyers, retail buyers or lease option buyers. What you need to understand is that, as an investor, you need to be able to do a number of things well, both internally and externally. For example, you need to not get caught up with buyer fever and get into a contact to buy a property that you can’t sell later, because that is purely a waste of time. You have to avoid greed and remember that your job as a real estate investor is to find, negotiate and deliver money making opportunities to yourself, your investor cash buyers or your tenant buyers. It’s that simple.
You can make a little money, or a flipping fortune for the short time you invested and then pass on your finished product, for example, a wholesale contract that is a money making opportunity to another investor, a rehabed house to a retail client, hard money loan to other investors or people in foreclosure, a lease option, etc. so the people you are targeting as your end buyers or borrowers. Remember what we were talking about here, making money in real estate and that is everything that this program is all about. We will get into the details of each and every type of real estate investing opportunity, and obviously at that time, your perspective will change, because you may be taking on other roles as you learn and become more successful as a real estate investor. A point to remember though, your work as a real estate investor should never be underestimated or undervalued by anyone you deal with.
You are on the front lines. You are the one who’s doing all the work and making the effort to smoke out sellers and investment opportunities to make deals where other people cannot. You are the one bringing in the buyers to purchase the properties no one else wants to buy. You’re in charge and leading the way from the very beginning, you deserve the respect and the money that comes along with putting deals together successfully. You need to always keep your mental opinion of yourself, your business and everything you do, every high at all times. You will make more money at this business than you could ever imagine was possible, if you apply all of the knowledge you learn, take action, follow the steps and work the system as it was designed. This is easy if you do a couple of things before you get started. Empty your cup so that it may be filled, become devoid to gain totality, that’s a quote from Bruce Lee. Now that is no joke.
Just listen to the information I’m sharing with you and apply the knowledge and you will definitely get results. The next thing is, you’ve got to hustle. Hustle, work, make an effort, go for it, you have to follow the process and take action in order for my system or any other system, quite frankly, to work. This is the very beginning of your new life. You’re in control of your destiny. Now get out there and make it happen. I put this pod cast and my You Tube videos out there with a totally different end result in mind. You see, most of the material you buy out there today or get your hands on is usually triple spaced ebooks, loaded with useless images, packed with exhausted, broken and tired marketing strategies and different materials that they give you and packaged to make it look like you got a lot for your money.
The funny thing is that, there are some relatively popular pod casters and real estate investment gurus, that have kind of popped up and shown up out of the middle of nowhere. I’ve just seen them arrive on the scene, and they’re making a killing because they have a good game, they have a good story, a good commercial and they really are just taking everything. Even though they claim that they are not selling recycled material, and they claim that they have the greatest marketing in the world, I’m telling you, I would go bank account to bank account with anybody out there, and I guarantee you, I’m leading the way with regard to what my income is and what my marketing pieces, my marketing approach, and client conversion rate is. There’s no question about it. The people out there, again, they’re just making something look really pretty, and delivering you garbage. So guess what you wind up with.
They sell the hell out of the idea of their product, and then you get it and it looks so bad, that you can’t even bear to look at it. You don’t even want to read it, you are so utterly disappointed that you’ve been taken advantage of, you feel like you have been taken advantage of, and I’m going to tell you, a lot of my competitors, I buy their stuff, because I’m curious to see what they’re offering. My ebooks, my coaching, my marketing pieces, they’re the best in the industry, I’m going to say that, without a question. There’s nobody that can hold a candle to what I’m offering out there right now today. It is a fact, not an opinion. Basically, you’re not going to find any of that there, my system is simple, it’s to the point, step by step, systematic, and you’ll yield tremendous results if you follow and apply what I’m sharing. The first thing I think anybody needs to do, and this is the subject of today’s pod cast, is to get yourself a business plan.
In order to have any business be successful you need to create an easy to use, easy to understand, and easy to follow business plan. If you don’t know where you’re going, you’ll never get there, right? The first thing you need to do is get crystal clear on your goals. You need to understand what it is you want, how to get it and all of the steps in between so you can make your success a reality. Let’s get started designing your new life as a real estate investor. The following information is basically what your business plan should look like. What mine does, and I do one every year, and all of the people that work for me, bird dogs, agents, even the contractors, I make everybody do a business plan so they can all stay on track with their goals and what they want to accomplish in their life. Even if you’re already an active investor, you can still get clear on your goals and that will help you get focused and help you get on the road to success much quicker and easier than just trying to wing it.
Lets’ say you have a goal of earning a hundred thousand dollars during the next twelve months. We need to break that down into smaller pieces so that you can get to that daily and even hourly task that you need to do on a consistent basis in order to achieve that hundred thousand dollar income goal. One thing you should not do, is make it about the number of deals you want to do, because you can do a ton of deals that don’t make you any money and gain a ton of experience, but what good is it if it’s not putting any money in your bank account, right? None. Breaking down that hundred thousand dollar goal is simple, so what I want you to do is write out your business plan and put it on the wall in front of you where you’re going to see it most throughout your day. Put it up on the wall at your office, or home office, kitchen table or bedroom, wherever you’re going to be starting your real estate business and read it twice a day.
I want you to read it once in the morning before you do anything else, so it’s the first thing on your mind in the morning, and then read it again at night just before bed. This is going to help you keep your goal at the front of your consciousness at all times, and eventually you’ll have committed it to memory and your subconscious mind. At that point, you’ll be doing all of the action items necessary to realize your goal of earning an extra one hundred thousand dollars from real estate investing, in the next twelve months. So you ready? Okay, here we go. Breaking it all down, one hundred thousand dollars is your goal, so one hundred thousand dollars divided by twelve, which is the twelve months, is what? It comes out to eight thousand, three hundred, thirty three dollars per month, and I rounded down to the nearest dollar.
So if I want to make one hundred thousand dollars a year flipping houses, that’s going to average out to a monthly income of approximately eight thousand, three hundred, and thirty three dollars. How many deals do I need to do to hit my goal if every deal has an average earning of ten thousand dollars? Pretty easy math, right. We need to do ten. Ten deals times ten thousand dollars equals a hundred thousand bucks. That’s it. Less than one deal per month. Wow. Now this is getting interesting, isn’t it? Okay, so on to the next question. How many letters do you need to send out to have sellers calling you, setting appointments and selling you their house? Here’s where the math gets a little interesting. I will use national averages to determine the direct mail response rates for the business planning process, but you should know that my average response rate for my direct mail campaign is much higher. The national average direct mail response rate is one percent.
That means for every one hundred pieces you mail out, you can expect to get one person to respond. Now remember, I said respond, not roll over and give their house away. They will simply call you to learn more at this point. The next question is, how many deals do you need to do to accomplish your goal? What is the average conversion rate? In other words, how many people need to call you in order to get an appointment. Out of those people, how many of them do you need to set appointments with, and out of those appointments, how many will actually sell you their property? What I have seen over the years, is that I close an average of one third of one third of one third. You confused yet? Don’t be, because I’m about to clear this all up right now. Work the numbers backwards, and it’ll all fall into place really fast. What does the number ten represent, as being one third of? Thirty, right? A third of thirty is ten.
Ten is the number of deals you need to close to hit your one hundred thousand dollar goal. Next question is, what does the number thirty represent as being one third of? Ninety. Are you still with me so far? Okay, we’re going to keep moving now. Ninety equals one third of what? Two hundred and seventy. Two hundred and seventy is what exactly? Can I get a drum roll please? The number of legitimate in bound seller calls needed to hit your goal. So you did it. You got to your number, which is two hundred and seventy, you need two hundred and seventy in bound phone calls that you are able to talk through the phone, follow up script in it’s entirety to get your ten deals for the year. Now I will say, that this is an estimate. If you work the numbers backwards, you’re going to see something like nine point seven, not ten, but you need to know that this is as close as it’s going to get to predicting the future. Now we’re on the last leg of the business plan, so hang on tight.
If you need two hundred and seventy people to call you over the course of the year, not including the people who call to tell you that the house is already sold, take me off your list, etc. Then how many pieces of mail do you need to send out in a year to get that number of in bound calls? You also have to figure that about twenty percent of the callers will be calling to tell you to remove them from the list, or the property’s already sold so we have to factor in that twenty percent, because we simply don’t know that information until they call. That comes out to a total of three hundred and thirty seven in bound calls. I rounded down by half of one phone call here. How many pieces of mail need to be sent to get three hundred and thirty seven in bound calls using the national average of one percent response rate? It’s easy. Thirty three thousand, seven hundred. So that’s it.
You need to send out thirty three thousand, seven hundred pieces of mail per year in order to generate the number of qualified leads we’re talking about to hit your goal of a hundred thousand dollars. Now here’s where it gets really good, so stick with me, because I’m going somewhere with all of this. Using just one of my marketing techniques, I generate a consistent annual response rate of six percent per year, year in and year out. If we use six percent as the benchmark number, then you only need to send out twenty thousand, two hundred and twenty pieces of mail over the course of the year. Which breaks down to one thousand, six hundred, eighty five pieces of direct mail per month, and you will hit your in bound calls goal. That’s only about three hundred and seventy five pieces of mail a week to get sellers calling you and getting deals done fast. We’re talking about like fifty to sixty pieces of mail a day, you can do this in one hours time, in your spare time.
This is not a lot of work. Remember that this is a business and you have to market to get business. And this my friend, is your business plan. You can scale this up and down according to your goals and how much money you want to make per deal. You should know that my average wholesale deal nets me about twenty thousand bucks each, and I regularly do deals of thirty thousand to a hundred thousand plus, per deal, so open your mind to the process and take some action. You will get results, and do deals that you apply this information. You can easily make more than ten thousand dollars per deal, but you should seriously consider if doing any deals where you’re making less than five thousand dollars is really worth the time and effort. My opinion, it’s really not, but that’s your decision ultimately, you got to make. Okay the last point, regarding the business plan here. The last point I want you to keep in mind is this, remember the law of averages.
You’re going to send out more letters than you’re going to get calls. You’ll get more calls than appointments. You’ll schedule more appointments than you’ll actually get sellers to work with you. And you’ll actually get more sellers to work with you that are willing to sell you their property than you can actually turn around and sell and close. But you will get closings. It’s that funnel effect. You got a lot of stuff at the top, which is all the mail, and as that funnel narrows down to the bottom, everything coming out of the bottom is closings, that’s money for you. Along the way, it has to kind of stretch itself and shed a lot of the dead weight, right? So keep that in mind and don’t get frustrated by angry callers or people that are unrealistic about their numbers. If it’s not a motivated seller you got on the phone, then it’s just not worth your time and effort. So never give up and keep in mind that it’s a numbers game.
Simple as that, work the numbers and get good at playing the game. I want to hear about your success, and I definitely want to do a phone interview pod cast with you when you close your first deal, so get out there and make it happen. You can do this, believe me when I tell you, it is not hard or complicated when you have the right tools, systems and support in place. I want you to be successful, make more money, help people, and change a lot of lives for the better in the process. I can’t explain what real estate investing has done for me. It has totally changed my life for the better and there isn’t a thing on this earth I would rather be doing than real estate investing and helping other people realize their dreams, by teaching you what I know and what I’ve learned along the way. Here’s a small favor I do want to ask of you, if you’d go to iTunes and download my pod cast, leave me some feedback.
I always appreciate the five star reviews and I’d be happy to announce your name and reviews on my next recording of the Extreme Real Estate Investors pod cast. As I said, I definitely want to share your success stories with the rest of the listeners out there. So take a little time, go to iTunes, leave a review, and I hope you found this information on my pod cast informative, inspirational, and it motivates you to get out there and make a difference in your life and the lives of other people, by helping them get rid of properties they no longer want or need. If you have any questions, you can email me direct at info@ExtremeRealEstateInvestors.com, that’s info@ExtremeRealEstateInvestors.com or just go to ExtremeRealEstateInvestors.com and contact me through my website. While you’re there, you can download my ebook 16 Ways You Can Turn Unleveraged Assets Into Income for free.
I’m excited to announce that we are going to publish our ebook and training course manual very shortly, probably within the next thirty days or so it’s going to be all done. If anybody is interested I’m going to be leaving all the links on the website and mentioning them in the pod cast and You Tube videos as well. You’ll have information about that coming up here shortly. There’ll be a ton of information, it’s a huge book and you’ll be able to get it right away before anybody else, just by listening. I also want you to go ahead and send me an email or contact me through the website at ExtremeRealEstateInvestors.com. If you have any subject matter you specifically want me to cover in the next episode, I’d be happy to help and do everything I can to help you in your real estate business.
Thank you for listening and I really appreciate you taking the time out of your day to listen to what I have to say about the world of real estate as I know it. I’ve had a lot of fun and hope you learned a thing or two and remember to always pay if forward. Until next time, happy investing and remember to go big, or go home.